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Advocating For You

Understanding credit situation can be helpful during divorce

When two people in Texas decide to get divorced, they may understandably be overwhelmed by the many changes that will come their way. One of these changes is transitioning from a two-income household to a single-earner household post-divorce. However, understanding their credit situations early on can help divorcing individuals to make the wisest financial decisions possible during the divorce process.

At the start of the divorce process, it may behoove a spouse to get a copy of his or her credit report as soon as possible. The report will show the spouse his or her financial obligations, including lines of credit as well as home or auto loans. Knowing this information is essential, as it will help with making decisions concerning debt and property division during the divorce.

The best credit reports to obtain are those that feature trade lines. Trade lines are essentially the accounts that show up on a credit report, as finding out details about these accounts can be more useful than simply accessing the latest credit score. A new credit report is available through the well-known credit bureaus of Equifax, TransUnion or Experian.

Juggling financial issues along with the matters of child custody, for example, can certainly be difficult for those getting divorced. Fortunately, a divorcing spouse in Texas does not have to navigate these complex matters alone. An attorney can advise a client on the best way of approaching property and debt division, as well as fight for the best result for the client considering the circumstances surrounding his or her divorce.